Affected by the Red Sea Crisis, the shipping detouring around the Cape of Good Hope have extended travel times which drive the container freight rates rising sharply since middle April. However, Shanghai Containerized Freight Index (SCFI) from China to Europe showed a weekly decline for the first time, with a decrease of 0.5%.

According to understanding, the shipping freight prices are too high to afford by the exporters and importers. It may be a bubble in the current container shipping market, and the increase in freight rates has exceeded historical levels of the COVID19. Singapore port congestion continued to improve since May. It is expected the high freight rate might last to September.